Introduction: In this opinion piece, Rituals CEO Raymond Cloosterman talks about the wellbeing company’s Profit Pledge, which sees it commit 10% of its net profits (approximately €300 million to €400 million over the next decade) to various Environmental, Social & Governance (ESG) initiatives around the world.
Cloosterman shares the thinking behind the pledge and how it aims to better the balance between profit and purpose, highlighting the importance of enhancing the wellbeing of not just people, but also planet.
Rituals, one of the fastest-growing luxury beauty brands, has been on a mission to support the wellbeing of its consumers. Helping people to find happiness in the smallest of things will always be our passion, but today, we believe the future of brands lies in taking more responsibility.
We are determined to use our company as a force for good. In my vision of 21st-century entrepreneurship, it is not just about growth and profit, but primarily about the impact we make. This is why we launched the 10% Profit Pledge.
Identifying the imbalance
The culture of Rituals is focused on preserving our entrepreneurial spirit. It is this spirit that drives us to take action for society and the environment – not because others expect it from us, but because we deeply believe in doing what is right for both people and planet. That is why we’re changing the way we do business with the 10% Profit Pledge. With this, we are committing to invest 10% of net profits, an expected €300-400 million over the next decade, to causes that enhance the wellbeing of both people and planet.
This commitment reflects Rituals’ core values of balance, wellbeing and sustainability. By prioritising social impact alongside profitability, Rituals positions itself as a leader in the beauty industry, demonstrating that businesses can thrive while contributing positively to society.
This approach aligns with the growing consumer demand for brands that take responsibility for their impact on the world.
Research, like the Edelman Trust Barometer, indicates that trust in governments and media is declining, while trust in brands is rising. The culture we have created within Rituals is to never lose our entrepreneurial spirit.
We have the organisational structure to institutionalise this approach within our company, which also motivates all our teams. That spirit makes us take action, not because others tell us to do so, but because we intrinsically believe in doing the right thing.
Our journey has just started, and we hope it inspires other companies to follow.
Profit Pledge
Profit Pledge is a new initiative in the industry, committing 10% of the net profits to causes contributing to wellbeing of people and planet. From planet to people, imbalances are everywhere, and Rituals is starting this journey with three main initiatives.
One of our primary initiatives is with Sacred Forests, an organisation dedicated to reforesting the Sierra Nevada De Santa Marta in Colombia, a region of exceptional ecological value.
Unfortunately, the world today is off balance and it is up to us all to improve this while we can. I will never forget that moment when I saw David Attenborough’s film A Life on Our Planet.
I was nailed to the ground being confronted with the harsh reality. Rainforests are hugely important in the fight against climate change. Unfortunately, many of them are being deforested.
We are committed to helping this indigenous community reclaim their land and protect 200,000 hectares of rainforest for generations to come. This simply is crucial in the fight against climate change.
Similarly, the shocking revelations of the UNICEF report struck a chord with me, revealing that over 166 million young people are dealing with mental health issues, with anxiety and depression making up about 40% of these issues.
This realisation resonated deeply with Rituals’ core values. It is so close to our DNA; we realise we want to do more. The future of children is our future; we must support building their mental resilience.
That is why we co-founded Super Chill, a free app that provides kids and caretakers with the tools they need to build mental resilience. The app uses playful exercises, mindfulness, breathwork, yoga and more to teach children how to keep a positive and healthy mindset, especially in moments of discomfort.
The goal is to reach 10 million children, building a future generation of kids with a healthy and positive mindset.
We also commit to increasing the percentage of our total sourcing budget to produce with suppliers that create social impact. We will continue to support Tiny Miracles, to support their mission of breaking the cycle of poverty in Mumbai since 2011; providing life-changing income, healthcare and education for communities.
Call to the industry
Through Profit Pledge, our hope is that the beauty industry adopts similar initiatives that focus on supporting the wellbeing of people and planet.
We want to create a culture of responsibility and collaboration and believe that through a collective effort, we can have a greater impact and hopefully inspire other companies too. ✈
